Purchasing a condominium in Winnipeg.
There are important documents you need to review in order to finalize your purchase.
Your REALTOR® will make sure you have received all the required documents but some private sellers are selling condos WITHOUT providing the proper condo documents to their respective buyers. If buyers are looking on their own and don’t know the requirements, they can get stuck buying a condo without these important documents. The problem arises that, if at the time of possession, the buyer discovers that the facts surrounding the condo were not properly presented, the buyer cannot back out of the deal, citing ‘lack of condo document presentation’ as their reason for backing out. The purchaser is given time to notify the seller, but sometimes it’s too late and you may be stuck with a property that has a bunch of problems.
So here are the 6 items that a Condo Seller MUST provide to the Condo Buyer AT THE TIME OF THE ACCEPTANCE OF THE OFFER. The Buyer, upon receiving these condo documents, then has 48 hours to look them over (NOT counting weekends or holidays) and during those 48 hours the buyer can withdraw their offer for ANY REASON. So here are the Condo Documents.
7) Building Insurance Certificate
This shows that the building insurance has been paid and is current
6) Management Agreement
This is the agreement between the condo corp. and the current management company. These usually run for between 1 and 5 years.
5) Condo Declaration
Fairly standard legal info that was drafted at the time when the condo came into ‘being’. It tells how the condo board meetings are to be held, and other legal issues. Basic and standard info.
4) By-laws: rules and regulations
EVERY condo has rules and regulations. The original set was drafted when the building was first built and can have amendments over time. Update and change over time. Some basic rules for example: “No Laundry to be hung from the balcony. You cannot park an RV in your parking spot. Etc. Difference between “By-laws” and “Rules”? By-laws govern the entire building and property, whereas rules apply to the ‘common areas’, such as hallways and parking lots. By-laws require a majority approval of all owners (usually around 75%), but rules can be passed by the current board at any time.
3) Financial Statements
This is usually a couple of pages long and shows where all the money has gone in the past year (or two) So it will show a total amount of money received through the condo fees (and other sources, such as parking fees, laundry fees in buildings with coin-op laundry), and then shows all the items that had been purchased and repaired and maintained over the past year or more.
This is the projected budget for the next year. Estimated costs of repairs or improvements.
1) Condo Disclosure
THIS is the most important item in the Condo Documents. It will show whether there are any increases in condo fees being planned, any major repairs or renovations being considered, and special assessments coming along the way, any law suits or insurance claims pending against the condo. Keeping in mind that as the buyer, you are buying a small percentage of the entire building (or buildings), this is most certainly information you should have.
A final point: The Disclosure Certificate must be dated WITHIN 90 days of the offer
If you’re thinking of buying (or selling) a condo (or a house), please call me anytime for a free consultation. Any REALTOR® can send you listings via e-mail, but my buyers are among the best prepared in the market. Let’s go condo-shopping.
Conversely if you’re thinking of SELLING your condo, please call me. As a condo owner, I DO understand them a fair deal better than the average agent, and this can come in handy when your prospective buyers have questions.